VANCOUVER, BC (October 2nd, 2013)...GLOBAL COBALT CORP. ("Global Cobalt") (TSXV:GCO) (the "Company") is pleased to announce that it has awarded the Feasibility Study contract to advance the Karakul Cobalt project ("Karakul" and or the "Project") located in the Altai Republic of Russia, to Beijing General Research Institute of Mining & Metallurgy ("BGRIMM"), a leading global mining consultancy. BGRIMM will work closely with Global Cobalt to complete the internal Feasibility Study (the "Study"), which will define the technical and economic parameters of the Project to assist with assessing a potential production and funding decision.
The Study will run concurrently with the $3 million, 7,200 metre validation and expansion drilling program announced August 21, 2013, and will incorporate both the results from the current work program and historic data at the Karakul Project site. The Study is expected to be completed by the end of Q2 2014. Metallurgical test work currently being conducted by SGS Chita and the NI 43-101 Resource Report underway by SRK Consulting will also be integrated in the BGRIMM work.
As part of the definitive agreement, Global Cobalt negotiated that all payments to BGRIMM associated with the Study will be delayed until 12 months after the Study is completed. Should the Study prove to be positive and BGRIMM is awarded the Engineering, Procurement and Construction ("EPC") contract for project development work at Karakul, BGRIMM has agreed that the Study work costs will be subtracted from the cost of the EPC contract.
"We are delighted to have finalized the contract for the Feasibility Study and are pleased to be working with such an established engineering services provider as BGRIMM," said Global Cobalt President & CEO Erin Chutter. "Completion of the Study will substantially de-risk our flagship project and highlight its financial and technical merits as the next potential major cobalt project outside of Africa. This is a major milestone and a further value driver for our Company."
BGRIMM, incorporated in China and directly under the Chinese central government (SASAC), is a leading institute providing innovative technology, diversified products, and process-oriented engineering services in mineral and material industries worldwide. With ISO 9001 certification and as a well established multi-disciplinary organization, BGRIMM takes pride in being a complete solution provider integrating research and development, engineering and equipment manufacturing tailored to customer requirements while serving the mineral industry with a full range of mining expertise. ?
Since its establishment in 1956, BGRIMM has been actively engaged in the effective integration of mineral resource development and in particular established its reputation as a leader in the processing of complex ore. BGRIMM continues to develop its business strengths covering base metals, precious metals, rare-earths and non-metallic metals as well as iron ore resources. BGRIMM not only acts as a products & technology supplier to its partners in mining but also serves other fields including mineral processing, non-ferrous metallurgy, processing equipment and reagents, resource evaluation, technical audits and diagnostics, due diligence, process development, environmental assessments, feasibility studies, engineering design, procurement and construction work.
Global Cobalt Corporation:
Global Cobalt Corporation is a Canada-based strategic metals company focused on the development of a new mining region in the Republic of Altai. Global Cobalt will build upon the success of the Altai Projects while aggressively expanding and exploring existing properties to meet the demand for cobalt and other strategic metals.
For Further Information:
Mr. Mitchell Smith, Corporate Development
Suite 1510-1050 West Pender Street
Vancouver, BC V6E 3T4
Tel: +1 (604) 688-4219
Fax: +1 (604) 688-4215
Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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